Challenge
Hiscox UK provides insurance policies for affluent customers with up to millions of pounds' worth of artwork. With this high-cost and high-profile portfolio, Dan Bishop, Head of Insurance Analytics at Hiscox UK, highlighted the issue of "spiky exposures" – specific locations where multiple high-value properties are located close to each other.
This clustering of assets increases the potential for substantial losses in the event of a major incident such as flooding, windstorms, or fire.
To mitigate this risk, Hiscox needed precise location data to accurately locate their associated properties, then assess and manage their exposure.
Solution
Hiscox used OS data, specifically leveraging geocoding to pinpoint the exact locations of insured properties.
The geocoding process involved accurately placing properties within a given location, to begin understanding the risk profile. Hiscox used OS products such as AddressBase, and the Unique Property Reference Number (UPRN), with other data from the OS MasterMap dataset including building heights, footprints, and land parcel boundaries.
These detailed datasets allowed Hiscox to both locate properties, and determine the size, shape, and outline, to better assess the risk of properties near rivers or in flood-prone areas.
Result
The integration of Ordnance Survey data enhanced Hiscox's ability to manage risk, set aside appropriate reserves and reduce unnecessary capital allocation, and then adjust premiums accordingly. This resulted in cost savings for its customers, as Hiscox could offer more competitive premiums.
High-quality OS data reassured Hiscox of the reliability and accuracy of its risk assessments, leading to better decision-making and improved customer satisfaction. In addition, improvements to the desktop analysis of properties, and associated risks, both mitigated the need for time consuming on-site inspections and significantly enhanced a conveyancer’s understanding of a site.
Hiscox's collaboration with a range of OS Partners over the years, including Verisk, Addresscloud, Europa Technologies, LexisNexis, and Royal Haskoning TWINN (formally Ambiental), has further strengthened its capabilities, connecting with experts who understood Hiscox’s needs.
In summary, the use of Ordnance Survey data allowed Hiscox UK to effectively manage exposure to high-value assets, optimise capital reserves, and provide better service to its affluent clientele.
"Working with OS, I feel I'm talking to experts, I'm talking to human beings rather than talking to the helpdesk. Because of Ordnance Survey data, it helps utilise the capital, the investment we have in insurance companies, we use that more efficiently which helps keep our expenses down and we can reflect that in the cost ultimately to the consumer as well."